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To: Kenneth E. Phillipps who wrote (34541)	5/1/2000 12:04:00 PM
From: William Hunt	Respond to of 77400

EMC CEO Says Internet Will Create $80T In Stk-Mkt Value Dow Jones Newswires NEW YORK -- EMC Corp. (EMC) Chief Executive Michael Reuttgers said he believes the Internet will create $80 trillion in stock-market value by 2010 for companies participating in its development. However, Reuttgers, who delivered the keynote address at a technology conference sponsored by Merrill Lynch & Co. (MER) here, said that Internet infrastructure companies "are in the best position to deliver the best returns of the newly emerging Internet age." Companies merely providing access to the Internet, on the other hand, are in perhaps the worst position, he said, noting that "access will become free." Reuttgers estimated that 5% of the $80 trillion in market value would go to infrastructure outfits, including EMC, a Hopkinton, Mass., storage-equipment maker, as well as firms such as Oracle Corp. (ORCL) and Cisco Systems Inc. (CSCO). Reuttgers said that dot-com companies represent about 12% of EMC's business. About half of that amount comes from Internet service providers. EMC had revenue of $6.72 billion in 1999. Echoing sentiment common in the technology sector in the last few weeks, Reuttgers said that many of those dot-coms will fail. And in the case of failure, Reuttgers said, "the only assets worth anything will be the information and where it's stored." Even if that happens, EMC stands to receive business, he added, because the company will help whoever takes over those assets, "and make it work." Reuttgers also outlined how the move toward network-centric computing will lead to less storage on disk drives. Therefore, sales of computer servers will slow, while demand for network-storage equipment will increase, he suggested. "I wouldn't be surprised to see server growth not be any greater than GDP growth," Reuttgers said. Reuttgers said that technologically, EMC is more than three years ahead of its closest competitors, International Business Machines Corp. (IBM) and Hitachi Ltd. (HIT). "I don't believe these competitors will go away," Reuttgers said. "But I don't see them catching up; I see us gaining even more share."